Special Investment Offer - 70% Discount valid only for next 7 Days

- Now (or) Never : A Special Combo Offer (Multibagger + Bulls Eye). GRAB IT !! 

       As pointed in the last Article, we are running a limited Period offer (7 Days) for the Investment Combo of (Multibagger + Bulls Eye). The advantages of opting for a mix of Long Term Investments + Regular Cash flow has been highlighted before. You can get in touch with our Contact person and avail this Special Offer.

This Week's Release List :

- Special Monsoon Report for Bull's Eye customers with Tactical Positional Calls. 
- A "Blind Bet" Multibagger Stock for the Month of May from Finance sector.

 You can also chat with our Analyst or Call us at 09845859071 to know more about our Investment Advisory Services and this Offer. 

How can Investors earn regular Cash from stocks other than Dividends

- Answer lies in following Time tested Special Situation Investing techniques for Intelligent Speculation

     While most people know that the only way to Strong Wealth creation in Stock Markets is Long Term Investing, very few people have the discipline to follow it. For several decades, disciplined Long Term Value Investors have created enormous wealth across the globe beating all asset classes by a Huge Margin. But still, most people don't have the patience and composure required to go through the pain phases of such Investing. They go ahead for short term trading which to a large extent is Gambling and then end up losing their Capital and then blame the Markets for their mistakes. These Leveraged trades or quick money opportunities falter in most cases. 

     Intelligent Investors control their desire to trade and make sure there is proper capital allocation. But just as everyone, they also require Cash Flows to compliment with the Value creation in their Portfolio. While dividends is one good and stable option, few Investors also do quite a bit of Medium Term Investment to get their Cash registers ringing. While Warren Buffet in his earlier days used to compliment his Value Investing with several control situation opportunities and Arbitrage positions on corporate actions, today's fund Managers use a lot of Tactical Positioning in their portfolio. 

     Our understanding is that any smart Investor will deploy 75-85% of his capital in good Core Portfolio picks which compound over a period of time and he uses 15-25% of his capital for Medium Term Investment opportunities which will help him get regular cash flow from Investments. So, now how does one do Profitable Investments over medium term. Instead of re-inventing the wheel there are 4-Time Tested ways of going about it. Before we learn those, let us understand the basics through a Video.

         

1.) Tactical Positional Calls in Large-Cap stocks :

           Tactical Positional calls are the best ways to profit from Large Cap stocks. These stocks don't have big Structural opportunities, but can deliver good returns in 6-12 Months time frame for specific reasons. Tactical Positions are also taken on Market conditions and Macro Themes. For example, when Consumer and Pharma stocks are on a consistent uptick - it makes more sense to enter these stocks from a Medium term perspective. Also, if we believe that there are Interest rate cuts around the corner - we can position ourselves for that in good Finance stocks. These techniques are employed by various good Fund managers to position themselves for quick returns.

2.) Special Situation Arbitrage Opportunities :

            Special situation Arbitrage is generally the best amongst the lot, because there is very little Risk but the rewards can be handsome. In Indian markets, good Arbitrage opportunities occurs in Rights Issues and Delisting Offers. There are at least 5 Good Opportunities which we find every year on this front. For example, very recently we Invested in Fresenius Kabi at 125 Rs and are well placed on the minimum to get 130/ share along with a decent Probability of 10-20% higher returns.

3.) Event/ News based Trades :

            Event/ News based trades happen requires you to position yourself ahead of the Market in expectation of an event like Monsoon, Budget etc. News based trades includes reacting to News flow after its out. Here you need to be very sharp and it is very short term. Here too, Event based trades work - if there is Research Insights on Micro parameters. For example, we are coming out with a Monsoon Report with some Stock Ideas releasing this week.

4.) Speculation on deep Insights :

        Company's New capacity is going on stream over the next quarter. This Month, Raw Material prices have gone down and hence Margins would bounce back. Based on these Insights, if you believe that the Market is not factoring these - then you can make a cool return over time. We currently have such a Tactical speculation on Battery Manufacturers.

These are the ways by which you can make good Medium Term returns and keep the Cash in the Portfolio rotating. We believe that this Ideal mix between Investing and Speculation will serve the purpose of our Customer. We have dedicated Services for Long Term Investment in the Form of (Multibagger) and for Medium Term Speculation in the Form of (Bulls Eye). A Combination of these Ideas will be the Perfect Mix for a person to deploy Capital and grow his Money along with Regular Cash Flow. 

Keep Watching this space for a Special Combo Offer on these Packages. For more details, you can mail us at info@hbjcapital.com (or) Call us at 09845859071.

A "Blind Investment bet" which can deliver Mind-Boggling returns !!

- Another Finance sector stock which can deliver Multibagger returns to Long Term Investors

   We have been pretty good in spotting Good Financial sector stocks well ahead of Market's recognition. From niche Finance companies like Manappuram Finance, Mahindra Finance to turnaround Ideas like Indiabulls Financials and ever-green Investment picks at cheaper prices like Karur Vysya Bank. All our Finance related stocks have performed extremely well with returns upwards of 70%. 

                                

                    Mahindra and Mahindra Financial Services from HBJ Capital Services Pvt. Ltd

    We believe that our Stock pick for May which is also Finance stock, has a good Niche within the broad Financial sector and is looking at huge opportunities for growth over the next several Years. This stock is a Blind bet because - "It is definitely a Blue-Chip in the making".  We believe that there are several positives to the stock, one of the main being the Promoter Quality and disciplined Capital Allocation process of the company. This itself is a Big Moat in this Industry.

    Blind Bets can easily turn out to be Value Traps, if there is a Non- Credible Managements. So, its important to understand the Qualities of the company's Management especially in Financial sector. Our Multibagger stock recommendation for May is one such stock where we believe that the Management has both Credibility and Competency. Well respected Promoter. A Management team which has executed their plans well. More importantly, the team is headed by a Dynamic Leader.

    There was a Research by Enam a few years back on how, most of the Highly Value creating Enterprises was headed by people in the Age bracket of 40-50. Most of these companies had their peak when these Leaders were within this Age. There is some logic behind it, in the fact that - Leaders in their 40's are not young enough to take Irrational decision nor they Old enough to be too conservative. They have fire in the belly and take calculated Risks to take the enterprise to the next level. Several examples of these Include - Fransico D'souza, Munjal, Naik, D. Sanghvi, Rajiv Bajaj, Nilekani, Kishore Biyani etc.

    Our Research Insights shows that, the Leader of our Multibagger Stock is one such Young and Dynamic Professional aged around 42 with a strong desire to build a big Financial conglomerate and take advantage of the Opportunities in Indian Market. Other than the Management Quality, some of the other positives about our Stock pick includes,

- One of the Best Capital Allocators in the Industry.
- Beat Industry metrics in most Return Ratio& profitability parameters.
- Has a strong Foothold in a space which has Multi-Billion dollar potential.
- Steady and Cheap Float generation in the Business.
- Strong Balance sheet to Invest in growth for many more years without Dilution.
- Aggressive Subsidiaries to cater to a wide Range of Financial needs.
- Good culture and Disciplined performance seen over the last several years .
- A Business with over 30+ ROE % is quoting at less than 1.5X its trailing Book Value.

    One more Interesting snippet which needs to be pointed about the Stock pick is, "This Stock is related to the World's best Investor". We definitely believe that this stock is a Blue Chip in the making and will deliver huge Multibagger returns for our Clients going forward. Our Clients will receive a 40-Slide detailed Research report on the stock.

You can get un-biased Research advise on your Stock picks and build a Strong Portfolio for the future - by subscribing to our Top Quality Investment Advisory services. You can mail us at Info@hbjcapital.com or Call us at 09845859071. 

Whips shareholders with bad Results and applies 2:1 Bonus Balm !!

- Larsen & Tourbo : One Bad Quarter results will not dethrone a Blue Chip business 

      Larsen & Toubro Ltd, the darling of investors and the envy of all engineering firms across continents made shareholders cry by whipping them with sub-optimal Q4FY13 results which were way below market expectations.

    In Q4FY13, Net Profits tanked by 6.9 per cent year-on-year to Rs.1787 crores. Finance Costs which were Rs.121.09 crores in Q4FY12 more than doubled in Qtr ended 31 March 2013 to Rs.280.99 crs. Sub-contracting costs were up about 20 per cent and Employee benefit expenses increased by about 16 per cent. Net Sales/Revenue from Operations however increased by about 9.9 per cent to Rs.20293 crs as compared to Rs.18460 crs in Q4FY12. Analysts on an average had expected the company to report a net profit of Rs 1,944 crore on net sales of Rs 21,050 crore.

      Earnings before interest, tax, depreciation and amortisation (EBITDA) fell more than 4 percent to Rs 2,451 crore from Rs 2,561 crore year-on-year. Analysts were expecting EBITDA at Rs 2,835 crore. Net Sales for the full FY2012-13 rose 14.4 per cent to Rs.60873 crores. Net Profit post tax in FY13 increased 10.18 per cent to Rs.4910 crs on stand-alone basis and by 10.9 per cent to Rs.5205 crores on consolidated basis.

     Thus, though quarterly results were not up to the mark, the company seems to have performed reasonably well during FY13 considering the ongoing tough and challenging scenario prevailing in the domestic and global environment.

     The Company successfully garnered fresh orders worth Rs. 88035 crore during the year  2012-13, recording a healthy y-o-y growth of 25%. The order Inflow during the quarter January-March 2013 was ` 27929 crore and recorded an impressive increase of 32%, despite challenging economic environment.

     The Board of Directors has recommended for the approval of shareholders, the issue of bonus equity shares in the ratio of 1:2 [one bonus equity share of ` 2 each for every two equity shares of ` 2 each held]. The infrastructure development is an irreversible process for reviving growth momentum in India and the Company, with its proven execution capabilities, is well positioned to harness the potential opportunities. The international business environment provides opportunities but is highly competitive. The Countries in the Middle East, select markets in CIS Region, Africa and South Asia, however, hold good prospects. The Company is investing in business development efforts in these select international markets.

     The Company is optimistic in sustaining its growth momentum on the back of healthy order book and strong balance sheet. Today L&T tanked by 5.57 per cent/Rs.89.55 to close at Rs.1517.10, the days high-low being Rs.1652.10 -1503.

    So, now the billion dollar question is : how low can L&T go? If we were to rely on recent historical stock price data, then one may be tempted to say that L&T could go below Rs.1106.40 which happens to be the 52 week low.

    However, considering the ongoing liquidity flow into our bourses especially from Japan and if we consider how blue chips have a tendency to bounce back after a sharp fall, then maybe the stock could go down by another 100-250 bucks and then slowly and swiftly like a crouching tiger it will start eating L&T bears for breakfast everyday!  

Don’t base your buy/sell decisions on figures alone – look beyond the figures and see if you can beat the crowd and if you don’t know how to do so, then seek professional help and guidance. Don’t bet on stocks not worth betting on – bet on the best and rest assured you will emerge a winner in this game.

Team HBJ Capital

Technofunda Calls : A safe trade to make 15% returns (Tech Mahindra Ltd) in next 2-4 weeks

To know more about Double Circuit Plan (Technofunda Calls) - CLICK HERE

Latest News Update:-

Mahindra group's technology arm Tech Mahindra reported 25 percent jump in its fourth quarter consolidated net profit at Rs 377 crore compared to previous quarter last year while revenue soared 35 percent to Rs 1,907 crore. The results were better than analysts' expectation of profit of Rs 368 crore on revenue of Rs 1,833 crore.

The management of the company remained optimistic for FY14. "There has been an uptick in spending, even in discretionary spending in the US. The need for telecom has grown and diversified which is creating an insatiable demand for data," said Vineet Nayyar, executive vice chairman Tech Mahindra.

Foreign brokerage house Goldman Sachs has maintained a ‘Buy’ rating on Tech Mahindra with a price target of Rs 1,300 citing that the stock is trading at attractive valuations and at 31% discount to HCL Technologies, its closest peer in terms of scale.

Domestic broking firm Religare is positive on the stock and has maintained 'Buy' rating with a price target of Rs 1200 based on 11 times FY14 price-earnings multiple. The research firm believes that update on the merger process and continued deal traction will be the key triggers for a valuation re-rating.

Despite our reservations on organic growth for FY2014E and acquisition strategy, one cannot ignore recent correction in stock price that has made valuations attractive again. Stock trades at 10 times FY2014E earnings. This stock can provide upside of 15-20% in next couple of weeks.

Regards

Prof Sameer Jain

Phaneesh Murthy is gone - What next for iGate shareholders ?

- Star CEO's exit will impact but the Board's Corporate Governance rating shoots Up !!

      The latest buzz on Wall Street and Dalal Street is this - Phaneesh Murthy,  President & CEO of iGate Global Solutions has been shown the Gate due to his involvement in a sexual harassment case with a subordinate employee. This is the second time such an incident is happening in Phaneesh's career.

Phaneesh Murthy can indeed now don the title of  ‘quintiple disgraced I.T  Hero’ and ask how come?

Disgraced iGate due to his latest adventure-cum-misconduct relating to sexual harrasment

Disgraced Infosys due to his misconduct relating to sexual harassment and consequently

Disgraced his alma mater IIM, Ahmedabad

Disgraced his alma mater IIT, Chennai

Disgraced all the Muthy’s on Planet Earth

      Whether its Bill Clinton or Phaneesh Murthy, a male chauvinist pig cannot go scot free otherwise such acts of sexual harassment will be a disgrace to the entire human race – past, present and future! So, hats off to the lightning speed decisions taken by Infosys as well as iGATE which reflects high standards of integrity followed by such companies and sends out signals to the world at large something like – nobody is above the law. After all Phaneesh Murthy was President & CEO of iGate. And you bet if  Phaneesh Murthy had done such disgraceful things in a PSU then there would be a never ending Enquiry Committee, CBI chargesheet, High Court hearings, Supreme Court hearings by which time he would have as well stayed on to enjoy his farewell party retiring as Chairman of concerned PSU!

    Well who on earth is this guy Phaneesh Murthy? Well, this hero who is now a zero worked silently and furiously as Head of Worldwide Sales & Marketing at Infosys during its Initial phase of growth. He was a Star and the Blue Eyed boy of Mr. Narayana Murthy having taken the company's sales from a mere 2 Million $'s to over 700 Million $'s during his tenure - A Huge Track record in any sense.  

      He was forced to resign in 2003  for sexually harassing Executive Secretary Reka Maximovitch and this  time he was not so lucky -  he was sacked by iGate for sexually harassing a subordinate employee. And as you would expect Phaneesh Murthy has bluntly denied his earlier act of Sexual Harassment in Infosy, his latest act in iGate and you bet he will deny his future act too! After all, it takes guts to admit that you have done something wrong and a wrong against the weaker sex is simply unforgivable.

     Murthy joined iGate Global Solutions [ former Mascot Systems ] as CEO and has grown the company rapidly after restructuring it. The high point in his career in iGate was the acquisition of Patni Computers in 2011 and taking iGate at the doorstep of Tier-1 IT Vendors. 

Now, the billion dollar question that is being asked by one and all  - whither iGate without Phaneesh?:

Well, friends the answer may appear baffling but the fact is:  the answer is pretty simple and straight forward.

     Agreed, Phaneesh Murthy has done wonders in iGate Global, a company which provides a range of services/solutions to customers spread across North America, Canada, Europe and Asia-Pacific. Its technological expertise ranges across ERP, CRM, IVR, Product Engineering etc. At this juncture, we all need to remember that ‘no one in this world is indispensable’ and men have come and men have gone but the show must go on and it will go on, always.

    The company has now appointed Gerhard Watzinger as its interim Chief Executive with immediate effect and this person will now have to embrace the daunting task of managing 28000 employees and 300 customers

    IGate beat market estimates in the first quarter [ Jan-Mar ], Net Profit surged 44 per cent to USD 35 million. Revenues were up 4 per cent to USD 274 million. The company had a deal pipeline of USD 3.5 billion as at end March. However, the company is sitting on a huge pile of Debt of close to USD 1 billion which was used to acquire Patni Computers for USD 1.22 billion.With court approvals pending, the merger process is expected to complete sometime during fag end of this CY.

    Conclusion : So long as we have companies like Infosys and iGate that excel in maintaining high standards of Corporate Governance,  the retail investor fraternity should never fear the markets and must come out of their cave and embrace good stocks that will present them with good returns time and again. 

- Team HBJ Capital

Pipavav Defence & Offshore Engineering - All that Glitters is not Gold

- 5 Points on why you should not be buying that Stock at current Price !!

      Pipavav Defence and Offshore Engineering Company Limited, formerly Pipavav Shipyard Limited, is engaged in defence, offshore, marine and engineering sectors. The Company has two units, one special economic zone (SEZ) unit spread over around 95 hectares of Land and another export oriented unit (EOU) Unit spread over around 103.92 hectares of Land. The Company is engaged in the Pipavav Shipyard project. Pipavav Shipyard is a shipbuilding, ship repair and offshore fabrication complex being constructed by the Company at Pipavav in the State of Gujarat, India.

      The Pipavav Defence and Offshore Engineering Co Ltd is the only company in private sector to obtain licence to manufacture frontline warships and Nikhil Gandhi is a very ambitious guy the ‘pan to warships’ type of dream come true is all nice stuff but here are  5 very simple reasons why you need to sell Pipavav Defence and Offshore Engineering Co Ltd

·     Company is highly leveraged with huge Debt on its Balance Sheet. 

·     Secondly, the ills of leverage get compounded by virtue of long gestation business model of company and its tie-up with Mazagon Dock and proposed association with  DCNS of France hardly matters in the sense  that if huge war ship or a sophisticated submarine takes say 3 years to build then even the worlds best expertise and technology cannot in any significantly  compress the estimated completion/delivery period  

·     96.98 per cent of  Promotors holding is pledged – this singular reason is enough for shares to keep sinking in case the lenders start off loading the shares leading to mass sell-off and further down slide and then we get to see something similar to Glodyne whose shares tanked from 52 week high of Rs.432 to Rs.12.18 that’s the last traded price on 20 May 2013 [ 91.72 pc shares pledged ]

·     Pipavav may find the going more difficult as its share price is way ahead of its fundamentals, given the slowdown in the shipbuilding sector and Pipavav's big bet on defence, a tightly-regulated sector.

·     And there’s one more solid reason for selling it, namely the PE ratio – by the way PE ratio means  the current price of one share of stock divided by earnings per share. For example, a stock that has a P/E ratio of 15, for example, tells you that it will take 15 years of the company's earnings at the current rate to add up to your original purchase price. And now please hold your breath : Pipav has a PE ratio of 200+ to be specific 262! How I wished we mortals lived that long.  And yes, a high PE does at times indicate that investors expect very high  growth in a company's earnings in the future but I am afraid that more often than not the crowd gets it all wrong – think Suzlon once touted as the best ‘green stock’ and I still remember the beautiful ladies and neck-tied gentlemen shouting on top of their voice to buy Suzlon at Rs.300+ and lo today it is Rs,14.34 bucks! Suzlon was supposed to grow at a frantic speed but then we eventually got to see only broken blades and broken hearts!

     So friends, never buy stocks on tips, rumours etc and nor should you ever get carried away or swayed by charismatic personalities and their grandiose plans. Do your own research or seek the advice of persons whom you trust or rather take advise from folks who provide frank and unbiased views on stocks.

   And most important : all that glitters is not gold nor silver and this is very much true in the stock markets at least since more often than not we get to see glittering companies which often end up shattering the dreams of investors.

Folks, let us know how many such companies you have in your portfolio and we will guide you properly. You can contact us by mailing to us at info@hbjcapital.com..

Team HBJ Capital

The Choice Is Yours : 3% in Cash OR 121% in Option?

• Can options trading "really" turn you into a millionaire in a short period of time?
• Can you truly get rich quick trading in Options?

At least that's what a number of websites promise. I won't declare that you'll become a millionaire over night, but I did discover that earning 50-100% return on your money is not uncommon. So if you just learn how to make more than you lose, creating wealth will be no problem. There is far too much information on the internet about trading stock options. It's easy to become confused and frustrated. I've attempted to solve those problems HERE

When it comes to trading, you are free to trade in cash market, future market or options. When it comes to risk, every trade carry risk and risk can be minimized when homework is done properly. Now when it comes to returns, cash market based trading which are long only might earn you 8-10% per month in general while future trading can fetch you 15-18% per month in best case scenarios. But Option is the only product which has potential to deliver 50% or more returns per month on your investment. So it is advisable to do trading in Options for excellent returns.

WHY TO TRADE IN OPTIONS ?

- To safe-guard your investments - Its most important that you do not  loose your capital invested in shares. Options provide you excellent techniques to hedge your investments. So markets may fall, rise or remain static, losses can always be avoided.

- To earn Regular and Consistent returns month after month - Need not wait for months or years to get some returns from your portfolio. You can take good returns every month if you trade smartly through options.

- To leverage your investments - You can start trading with small capital and slowly and steadily build capital from markets. Options give you big exposure with small investment only.

- Flexibility to device your own strategies - Learn the standard strategies and then device your own strategies that suit your investment style , risk appetite and knowledge.

Regards

Prof Sameer Jain

TMP Portfolio Update (Up 56%) : Booked 100% Profit in Poly Medicure

- We have added a new High Quality Multibagger stock - "Darling of Intelligent Investors" to our outperforming TMP Model Portfolio !!

         Our Model Portfolio service (TMP) has been largely unscathed in the recent Mid-Cap crash and is able to deliver stable returns in these times of Turbulence. With any uptick in the Markets, we believe that our Stocks would gain far Higher than the Markets and help our Clients earn meaningful returns on their Portfolios.

         The Most Unique feature of our TMP is the ease of Use for clients by just copying what Buying/ Selling we do in our Model Portfolio. One of the things which we did today is to book Partial profits in Poly medicure, a stock which we had bought very early than other Market participants. Considering the recent bonus issue news which has moved the stock up, we are booking partial profits in the stock and increasing the Cash levels in the Portfolio.

                           

                Poly medicure ltd (bse code 531768) hbj capital's street smart mid cap multibagger stock reco for apr'10 from HBJ Capital Services Pvt. Ltd

              The New stock which we have added in our Portfolio is a wonderful Technology stock which will definitely give a boost to our Portfolio returns in the Future. Moreover, this stock has a good compatibility with our Portfolio considering the Risk - Reward characteristics and the Hedge which it brings to our Portfolio. Some additional Points on our pick,

10 Reasons on Why you Should not miss Investing in this Stock :

1.) Growth Rate :- The company has been growing at over 40% over the last many years. While this Revenue Growth is difficult to sustain, it can certainly grow at decent levels.

2.) Quality of Management :- The promoters of this company are Well educated and connected. People who are in touch with these guys, vouch for their impeccable Quality.

3.) Track Record :- The company's track record in Scaling up its business has been tremendous. There have been very few players who have scaled up their Business so fast and Efficiently.

4.) Dream Financial Parameters :- Company in spite of growing in size, has been consistently improving its Return Ratios. Currently its Return on Equity is > 50% and ROIC > 100% which is very rare in any potential Investment opportunity.

5.) Size of the Opportunity :- The company is operating in a space where Indian companies have significant Moats and they are Globally competitive. The Size of the opportunity is Huge and companies which can scale their Operations well will become Billion $ Organizations.

6.) Differentiation (or) Moat :- The biggest problem in this sector has been the differentiating Factor between various vendors and we believe that this company through its Efficient Operations/ Technology backbone/ Processes has been able to carve out a Niche for itself.

7.) Cash Generation :- Company with Operating Margins in excess of 40% and low CAPEX needs, generates significant amounts of Cash flow every year. We believe that company with Stable margins will churn out huge Cash flows consistently.

8.) Capital Allocation :- The Management has been very good capital allocators. Company has a dividend payout ratio of over 45% and even in Inorganic growth has been rational to deploy cash.

9.) Robust Clientele :- The company has a very Robust Clientele and best part is that, most of it are Repeat Clientele which speaks volumes about Service quality. Account Mining and New Accounts are significant opportunities for expanding the company's Business.

10.) Future Potential :- With the Rupee at 55 to a $, the company's competitiveness in the Global Markets is huge and is now seen as a Sun-Rise sector. We expect this Mega Trend to continue and benefit this company in a Huge Way.

More details on this Stock can be seen HERE. So, if you require more details on our Portfolio Advisory services or some discounts in these Packages - you can reach us at 9886736791. 

It is not natural rally, it is like unseasonal rain? Formation of a top is near and traders should avoid taking long positions.

CLICK ON THE IMAGE TO GET INSTANT CALL...

Dear Readers,

There are many contradictory figures coming from various sources which show that this is not a seasonal rally we have been seeing since last couple of weeks. It looks like unseasonal rally. Particularly, after nifty crossing 5800 level, there seems no logic in it is having at almost 6100 level.

#1) Look at some auto stocks. Tata Motors’ April sales fell 15 %, but stock jumped more than 8 per cent last week. Maruti’s April sales fell 3.1%, but stock jumped. Same thing happened with Bajaj Auto and Hero MotoCorp. Sales down, stock up. Car sales for the year 2012-13 fell 7%, which is first time in last one decade or so.

#2) Ground reality or we can say our macro economy is showing different picture while our market is showing another picture. Look at ITC. The stock jumped and crossed Rs.350 level at a time when Mr. FM has hiked tax on cigarettes and some states have further hiked tax on it.

#3) Cobra Post revealed that many banks, including PSUs, are involved in money laundering. Inspite of this expose, most of the banking stocks were up last week.

Inspite of all odds, Sensex crossed 20,000 level and Nifty crossed 6000 level. Nifty is very close to 6100 level and may see this level on Monday. This is thanks to FIIs. FIIs have pumped in 10 billion dollars during Jan-March qurter. JP Morgan has said that they have invested more money in Indian market than in last 20 years. It is unbelievable. FIIs have started well in May also. They are net buyers to the tune of more than Rs.6100 crore in just first 10 days of this month.

Government will announce retail inflation data for the month of April on Monday. It will announce data based on whole-sale price index the following day i.e. Tuesday. 

Diesel prices have been hiked by Rs.1. So, auto companies which produced diesel cars will have negative impact next week. CLICK HERE FOR FREE TRADE ON THIS OPPORTUNITY.

Another point of difficulty is the behavior of the Rupee. The equity market and the Rupee are generally inversely co-related. It makes sense as one can say that the Rupee depreciation was curtailed due to the strong dollar inflows into the Indian Market. However the Rupee has depreciated to its lowest level for month of MAY and the Nifty has closed at the highest point of the month, which is absurd movement for an experienced trader. Despite the 6000 crore odd FII buying in the Indian Equities, the Rupee shows no strength whatsoever. Going forward we expect further depreciation of the currency and ultimately a test of 56.5 levels. 

We maintain our view that the formation of a top is near and traders should avoid taking long positions. We see the possibility of a correction in the near future. Traders can consider buying the 6000 puts once the Nifty closes below the 6000 mark.

This week both the indices continued to stay well above the short term average of 20dma (Sensex - 19243 and Nifty - 5843), medium term average of 50dma (Sensex - 19116 and Nifty - 5782) and even the long term average of 200dma (Sensex - 18811 and Nifty - 5706). Thus the trend in the short term, medium term and the long term timeframe remains upwards.

Market went from strength to strength and put to rest all doubts regarding the continuation of uptrend. Last week we once again pointed out the market needs to stay above Sensex 19754 and Nifty 5971, to negate the Bearish Head and Shoulders pattern and it happened this week. Both the indices rallied sharply as soon as the above mentioned levels were taken off. In the process, both Sensex and Nifty have formed a pattern which has a target of Sensex 21364 and Nifty 6465. It implies that the Sensex and Nifty seem to be on course to register new highs in the time to come.

If we have a Bearish candle formation on Monday, then we will have a Bearish formation known as Last Engulfing Top. Till then we can safely say that the candle-stick formations suggest bullishness to continue. Last week both the indices continued to stay well above the short term average of 20dma (Sensex - 19243 and Nifty - 5843), medium term average of 50dma (Sensex - 19116 and Nifty - 5782) and even the long term average of 200dma (Sensex - 18811 and Nifty - 5706). Thus the trend in the short term, medium term and the long term timeframe remains upwards. 

For the coming week, the March Industrial Production data and the import export data will be key factors to pay attention to. Among the other major triggers are the April inflation and the Consumer Price index data. Stock specific action would continue on account of the ongoing results season.

Regards

Prof Sameer Jain [Sameer@hbjcapital.com]

Infosys - Buy Call for target of Rs 2500 in next couple of weeks.

- Prof Sameer Jain

Which stocks will give you Quick returns during this Monsoon ??

- Pre-Book your Copy of this Special Bulls Eye Report with 3 Tactical Positional Calls !!

        Monsoon has a Huge impact on the Rural economy of India. While their importance to Indian Stock Markets as a whole has been losing significance over the years, they still play an Important role on various Sectors and Stocks which are listed. Monsoon largely determines the Financial performance of these companies in a particular year. While there will be Volatility around these Stock Ideas, its a good time for Intelligent Speculation as described in this Article.

       After a "Not so Good" Monsoon last year, Initial report from the MET department shows very good forecast for this year. Our Team has tracked several Variables and worked on various scenarios on the expected Rainfall levels. Based on results of these Research, we believe that the Stocks are not pricing the Upside returns correctly and there is some unwarranted caution. This provides Opportunities for Intelligent Investors and Traders.

        So when our Research Team set out to find Stock Ideas which can deliver good returns in a Short time frame through Tactical Positioning, they have been able to shortlist 3 Stocks. All of these are Medium Term Tactical Positioning Calls, where the underlying Stocks have good Momentum. These Stock Picks are verified by both our Technical and Fundamental Analysts.

       We have clubbed these Stocks in such a manner that, these Trades balance out different Market scenarios. While we have a High Risk - High Return Turnaround bet, there are also Stable Businesses where the Risk of Value loss is minimal. There is a Stock which is in Momentum and a stock which has been beaten down badly. These mix of Stocks will help us to earn good returns over the Monsoon.

       We have also released a Risk Free Arbitrage call last week on a Delisting Offer for our Bulls Eye customers. You  can get these by registering with us below,

        Fill this Form and Receive the detailed Research Report :

                     

Quality Ideas attract all Good Investors - HBJ & Westbridge Capital !!

- So what are one of India's smartest Investors - Westbridge Capital buying currently ?

     During our regular Research on Markets, we happened to find the name of HSBC- Jwalamukhi Investment Holdings picking up stake in several Good Small & Mid-Cap stocks. On doing further ground work - we were able to find that, it was the front end vehicle of Westbridge Capital. To people who don't have an introduction of the firm, its been promoted by the Magical Four Investors of Sumir Chadha, KP Balraj, Sandeep Singal and SK Jain. They were behind the success of Sequoia Capital when the older version of Westbridge was merged with Sequoia India. Last year, all the four MD's of the firm quit to raise a PIPE fund considering the attractiveness of Indian public markets. 

     After raising 500 Million $'s, they had started to deploy them from early last year. So, here comes the story. They seem to have found Huge Value in Small & Mid-Cap companies with structural growth opportunities and strong Moats which have the potential of Multiplying their money over the next 3-5 years. 

     HBJ Capital from Inception, has been focusing on identifying companies which can deliver Multibagger returns with a Structural growth in their Business. We believe our USP of doing detailed research on these Un-discovered gems has been strengthening consistently over the years. Our understanding of these Mid & Small-Cap ideas has helped us in building a Strong and Niche research team in that space. Let's understand why the fuss now and what got us excited, 

9 out of 12 Investment Picks of Westbridge has been HBJ's Recommendations, long before at much lower Prices. 

      Our Research team had spotted all these Stocks at very early stages and have put detailed Research reports on the same. This has helped our Clients to make a lot of money in these Stock Ideas. While there are several of these Stocks (4) which continue to stay in our Best Performing Model Portfolio - TMP even now. In fact, our Research Reports on Cera (Up 250%) and Astral Poly (Up 200%) which were released in early 2011 can be seen below,

                                   

                                        Cera Sanitaryware Ltd from HBJ Capital Services Pvt. Ltd

     

    If big Institutional Investors like - Westbridge Capital can enter these High Quality Small - Cap stocks looking at the Potential, we are amused when retail Investors fear about these Small Stocks. We believe that the entire Small cap universe should not be painted with a single brush and Quality needs to be differentiated and here lies a huge opportunity for Intelligent Investors.

    One common thing which you can see in Westbridge's Portfolio is the huge exposure to Allied sectors of Real Estate. We were able to spot this Trend much earlier and that led us to search for good Companies in those niche spaces. This has helped us to pick several of these High Quality names at cheap prices and we believe that, still there is a long way to go for several of these companies. You can have a look at our other Publicly available Research reports on companies like Ashiana housing or Persistent Systems or Mahindra Finance to understand this.

    Our understanding is that, in an Economy where Inflationary Expectations are high - there would be continued diversions of Household savings into Consumptional Investments like Home. This front ended buying gets aroused from higher Inflation and rising Asset prices.  Best way to play this theme is to pick Leaders in a Consolidated Market who have Pricing power. This space would continue to grow very strongly for many more years despite higher Interest rates and a slowing Economy.

     Anyways, our Research team has already identified the next Big Trend which can throw several new Multibagger Stock ideas. We believe that there is huge scope for Small companies which are Market Leaders in Niche consumption areas and also Quality Manufacturing companies with Moats. Our team has dug out a whole host of Investment Ideas in this space. We believe that several companies with huge structural opportunities in a growing economy are available at throwaway valuations considering the apathy among retail investors and low participation in Small & Mid-Cap space. Long term investors who are positioning themselves in these areas like our Model Portfolio, will earn huge returns over the next 3-5 years, when these stocks come into limelight in the future.

      Hope Investors take notice of this fact and start Investing in Good Ideas and we also hope Westbridge continues to deploy money in new Ideas from our Research Stable. For more details on our new Set of Multibagger Stock Ideas or to know about our Portfolio stocks, you can mail me at gokul@hbjcapital.com. 

Multibaggers = Multiplying your money in High Quality Stock Ideas

- Understand the Concept of Investing in Multibagger Stocks and Invest your money in these Wealth creating Stock Picks  !!

      Multibagger Stocks is a word made famous by the legendary - Peter Lynch to indicate stocks which multiply in Value. Our Research team from its starting days has had only one Goal - to find un-discovered gems which can deliver Multibagger returns. While Markets have gone through various phases over the last few years, we have continued to focus on building our expertise in selecting good Mid-cap and Small-cap stocks which can become Large-Caps overtime.

     To help you understand the concept of Investing in Multibagger Stocks, let me give an analogy along Real Estate. Large Cap (or) Blue-Chip Investing is like Investing in Prime Areas of a city which is well established for stable returns. Multibagger Investing involves buying Properties in an under-developed area, but has the potential to become a good location in the future. In spite of Uncertainty in these kinds of Investment, if one does proper Research - there is huge returns to be made.  Similarly in stock markets with strong Research, there is less Risk in investing in Good Quality Mid-Cap and Small-Cap stocks which can become Blue Chip investments going forward.

     HBJ Capital which started with its Flagship - Multibagger Stock package continues to Identify Multibagger Stocks consistently. Considering that the entire Research team's focus is on Identifying these stocks, we will continue to identify Multibagger stocks as can be seen from our Performance last year.

      While these Stocks have started their journey to become Multibagger's well, we are sure that these stocks have a very long way to go. All these Stocks are Good Investment Ideas and Investors can continue to stay invested in these Stocks for much higher returns going forward.

      These Stock recommendations are not made out of thin air and each of our Investment recommendation is backed by strong Research. We do detailed research on every aspect of the company before recommending a Stock and you can have a look at some of our Detailed Research reports below,

     
      To get an Idea of our Consistent Track-Record of selecting Multibagger Stocks, you can have a look at some of our Stock Ideas over the past few years. These are not One-Off Ideas and we are confident that, we will continue to Research stocks which are in no one's Radar - but there is immense potential for an Investor. During the last few years, we have also Strengthened our Research immensely and will deliver results to our Clients.

      For this Year, we have already selected several Good Multibagger Stocks and these stocks will deliver Fantastic returns going forward. You can receive our Latest Stock Idea.

To know more about our Multibagger Stock Investment package and get Offers on top of it, you can Chat with our Analyst or Call- Us at 09845859071.

MCX is down 40% from its Highs. Is it a good time to Buy this High Quality Stock ?

- Let us analyze the impact of Commodity Transaction Tax (CTT) on its Business  !!

       Everyone understands that, owning a Stock Exchange is the best way to profit in the Financial Markets. (As long as Traders are there, why worry about Volumes). It easy to find that the Casino Owner makes the most money at the cost of players in the Casino. The only listed exchange in India is MCX and God ! what an fantastic Business it has. Any Investor will like to Invest in a Monopolistic business which gives the company to earn very High returns on Capital. To give some of the Highlights of the company, 

- MCX is the Global leader in Gold and Silver Trading. 

- No:2 in the whole world in Natural Gas Trading and No:3 in Crude Oil. 

- Company has a Market share of 86% consolidating its Monopolistic position. 

- The Business generates huge Free Cash Flow and requires little incremental CAPEX.

       But since the last few months, there has been steep correction in the Share price of the company. One of the key reasons has been the implementation of CTT in the Budget which has dampened Sentiments. 

Impact of Commodity Transaction Tax (CTT) :-

      The Union budget presentation 2013-14, announced the introduction of CTT of 0.01% (Rs 10 per lakh) on non-agri futures traded on the exchanges. CTT was also proposed in the Union Budget of 2008-09 at 0.017%  but it was withdrawn because of stiff opposition from the market participants.

     The Indian commodity derivative market is still in a developing stage. Introducing the CTT at this juncture would be a impediment to the growth of the industry. India was expected to be a Gold price setter with the volume of trade in the metal.Of the total commodity transactions in India about half of the volume is in Gold. But the CTT on non-agri products would probably see the volumes decline.

1. Increase in Cost of Transaction:

       The imposition of CTT(0.01%) is going to increase the cost of transaction by more than 500% on an average. This would be the reason for big reduction in the returns of the market thus driving away small players and reduction in trading volume by large players.

2. Increase in Bid-Ask spread-

The Bid-Ask spread is inversely  proportional to the trading volume.The increase in cost would be transferred to the price, leading to greater bid-ask spread which will eventually reduce the liquidity.

3. Trading shift to foreign exchanges-

Empirical evidence suggests that when a government levies or increases transaction tax on local markets, investors shift their trading to overseas market. Experts fear the Indian commodity trading will shift to Singapore exchange, the same happened with Securities Transaction Tax(STT), which was levied on equities. 

4.  Inefficient Price discovery:

       Efficient functioning of Future Markets results in many benefits for optimal decision making and resource allocation. Futures markets also allows market participants such as Traders, Farmers, processors to hedge against Risk. Reduction in Volume and Increase in Bid-Ask spread would cause Inefficient price discovery. Worse with low Volumes, Prices can be manipulated easily. 

5. Increase in Transaction Cost :

    If the Transaction Volumes drop, Exchanges would definitely increase the Transaction fee. To keep such transaction costs as low as possible, it is essential to ensure the presence of a large number of day traders.As CTT would add to such costs, it would be a disaster for Commodity markets.  

    Although MCX has a Robust Business model, we believe that CTT impact would be pretty substantial. Considering the fact that MCX has one of the lowest cost structure, we believe that the company would be able to weather the storm and emerge stronger. While the exact entry point into the stock for a Long term investor can be argued, we believe that the stock should be on the watch list of every serious Investor and any Strong down-tick from here should be used for Accumulation of the share. 

You can Earn more Money by Investing in MCX Stock, rather than Trading in MCX-Commodity Exchange. 

- - Shekhar Yadav, Equity Research Analyst